Books: Ahmed Al-Shimi
\nPrivate - Amlak <\/p>\n
\tSaudi Arabia's real estate sector is the most attractive for investment, supported by a strong economy
\n\tMortgage mechanisms fuel high demand in the short and long term
\n\tResidential real estate accounts for 70% of total population activity and the government is working to narrow the gap between supply and demand
\n 3% Percentage of private sector participation in the real estate finance market
\n\tDeveloping the hospitality sector is an important resource to revitalize the real estate sector
\n Rising land prices and construction costs have dashed dreams of independent living <\/p>\n
MIDDLE EAST MONITOR said that while global real estate markets have slowed significantly over the past 18 months, Saudi Arabia has retained its position as one of the largest economies in the Middle East, with a real estate sector that is highly diversified and attractive to investors at home and abroad.
\nBased on the unique composition of the Saudi economy, supported by huge oil revenues and the government's endeavor to diversify sources of income, as well as the growing population, in addition to the high rates of expatriate labor, which represents about 28% of the total population, the demand for real estate and housing of all kinds is high, but the main dilemma is how to manage the massive government spending in a way that reduces the housing issue and makes it easier for citizens to obtain housing units.
\nAlthough the last period witnessed a kind of recession, due to the government's decisions to correct the status of expatriate workers, the rise in the prices of building materials, the layoff of more than 100,000 workers, and the high demand for labor and its wages by 15%, as contractors stressed that these steps may hinder the ability of contracting companies to complete projects estimated at 3 trillion Saudi riyals by 2020.
\nThe government has allocated about 65 billion riyals for infrastructure projects, an increase of 16% from last year 2012, including 30 billion riyals to develop the road network and build ports, shipping docks and airports, which represents a suitable environment for the real estate market to flourish.
\nDespite the efforts of the government of the Custodian of the Two Holy Mosques - may God protect him - to provide housing units and pump huge financing, the large residential increase represents an obstacle to bridging the gap between supply and demand, as the population is expected to reach 29 million in 2015, and the mortgage laws, mechanisms, regulations and procedures taken by the government recently will enhance the inherently high demand for real estate, which may continue at the same pace in the medium and long term.
\nExperts explain that mortgage mechanisms provide a clear and transparent framework for financing the purchase of residential and commercial real estate, creating a safe business environment that complies with international standards, in addition to increasing market liquidity, reducing disputes and establishing solid rules for transactions, which leads to increased confidence from developers and buyers.
\nThese government measures should encourage private sector participation in the real estate finance market, but private institutions are still only 3%, compared to 50% in developed countries, 7% in the UAE, and 6% in Kuwait.
\nThe hospitality sector is one of the most supportive sectors of real estate activity, especially since it is far from the changes and fluctuations of the local and global market, as 50% of the Kingdom's tourism revenues come from religious tourism, as the magazine described the government's measures in this regard as \u201dvery encouraging.\u201d.
\nThe Kingdom's real estate market is expected to grow by 30% by the end of this year, which is larger than other real estate markets in the region, with Egypt reaching 13%, the UAE 25%, and Qatar 12%, but the Kingdom still needs to build 300,000 housing units over the next five years, and 973,000 units by 2015.
\nExperts in the real estate sector emphasize that high land prices are still an issue looking for a solution in the Saudi market, calling for strict mechanisms to prevent the existence of random speculation that ultimately leads to high prices without market justifications, pointing out that this issue has made the dream of owning an independent housing for a wide range of citizens unattainable.
\nTherefore, many real estate development companies have turned to the construction of multi-storey housing as one of the active markets in the recent period, in light of the tendency of a large percentage of consumers to avoid the high costs resulting from the construction of a standalone residence.
\nThe magazine concludes its report by stating that the government's housing programs will generate many real estate opportunities, significantly limit price increases, meet the need of a wide range of citizens for housing, and reduce the demand for land, which will result in a significant decline in prices during the coming period. <\/p>","protected":false},"excerpt":{"rendered":"
Reading time: <\/span> 3<\/span> Minutes<\/span><\/span>\u0643\u062a\u0628: \u0623\u062d\u0645\u062f \u0627\u0644\u0634\u064a\u0645\u064a \u062e\u0627\u0635 \u0640 \u0623\u0645\u0644\u0627\u0643 \u0627\u0644\u0642\u0637\u0627\u0639 \u0627\u0644\u0639\u0642\u0627\u0631\u064a \u0627\u0644\u0633\u0639\u0648\u062f\u064a \u0627\u0644\u0623\u0643\u062b\u0631 \u062c\u0627\u0630\u0628\u064a\u0629 \u0644\u0644\u0627\u0633\u062a\u062b\u0645\u0627\u0631\u0627\u062a \u0628\u062f\u0639\u0645 \u0645\u0646 \u0642\u0648\u0629 \u0627\u0644\u0627\u0642\u062a\u0635\u0627\u062f \u0622\u0644\u064a\u0627\u062a \u0627\u0644\u0631\u0647\u0646 \u0627\u0644\u0639\u0642\u0627\u0631\u064a \u062a\u0639\u0632\u0632 \u0645\u0646 \u0627\u0644\u0637\u0644\u0628 \u0627\u0644\u0645\u0631\u062a\u0641\u0639 \u0641\u064a \u0627\u0644\u0645\u062f\u0649 \u0627\u0644\u0642\u0635\u064a\u0631 \u0648\u0627\u0644\u0637\u0648\u064a\u0644 \u0627\u0644\u0639\u0642\u0627\u0631\u0627\u062a \u0627\u0644\u0633\u0643\u0646\u064a\u0629 \u062a\u0645\u062b\u0644 70% \u0645\u0646 \u0625\u062c\u0645\u0627\u0644\u064a \u0627\u0644\u0646\u0634\u0627\u0637 \u0627\u0644\u0633\u0643\u0627\u0646 \u0648\u0627\u0644\u062d\u0643\u0648\u0645\u0629 \u062a\u0639\u0645\u0644 \u0639\u0644\u0649 \u062a\u0636\u064a\u064a\u0642 \u0627\u0644\u0641\u062c\u0648\u0629 \u0628\u064a\u0646 \u0627\u0644\u0639\u0631\u0636 \u0648\u0627\u0644\u0637\u0644\u0628 3% \u0646\u0633\u0628\u0629 \u0645\u0634\u0627\u0631\u0643\u0629 \u0627\u0644\u0642\u0637\u0627\u0639 \u0627\u0644\u062e\u0627\u0635 \u0641\u064a \u0633\u0648\u0642 \u0627\u0644\u062a\u0645\u0648\u064a\u0644 \u0627\u0644\u0639\u0642\u0627\u0631\u064a \u062a\u0637\u0648\u064a\u0631 \u0642\u0637\u0627\u0639 \u0627\u0644\u0636\u064a\u0627\u0641\u0629 … Read more<\/a><\/p>","protected":false},"author":34,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"0","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[100],"tags":[],"class_list":["post-87379","post","type-post","status-publish","format-standard","hentry","category-residential"],"acf":{"amlak_post_excerpt":"","amlak_post_excerpt_source":{"label":"Amlak post excerpt","type":"text","formatted_value":""}},"featured_image_urls":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","trp-custom-language-flag":"","event-thumbnail":"","event-medium":"","event-large":"","event-hero":""},"author_info":{"info":["\u0627\u0645\u0644\u0627\u0643 \u0627\u0644\u0639\u0642\u0627\u0631\u064a\u0629"]},"category_info":"\u0633\u0643\u0646\u064a<\/a>","tag_info":"\u0633\u0643\u0646\u064a","comment_count":"0","_links":{"self":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts\/87379","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/comments?post=87379"}],"version-history":[{"count":0,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts\/87379\/revisions"}],"wp:attachment":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/media?parent=87379"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/categories?post=87379"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/tags?post=87379"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}